Sunward Expands Cerro Vetas Mineral Body, Titiribi Gold-Copper Project,
Colombia

TSX-V: SWD

VANCOUVER, July 14 /CNW/ - Sunward Resources Ltd. (the "Company") is pleased to announce that the first drill hole at the Cerro Vetas deposit on the Titiribi Project, Antioquia Department, Colombia, has significantly expanded the known extent of gold-copper mineralization.

The Cerro Vetas Target

Cerro Vetas is the most advanced exploration target on the property and contains a 43-101 compliant inferred resource of 230 million tonnes at an average grade of 0.5 g/t gold and 0.2% copper using a 0.3 g/t gold cut-off (NI 43-101 Technical Report dated May 19, 2010). Recent re-interpretation suggests that the mineral body may be open along strike, down dip, and at depth. The Company recently commenced a 10,000 metre drilling program on this advanced target with the objective of expanding the resource.

Hole CV018 was collared approximately 50 metres north along strike of the northern-most holes previously drilled at Cerro Vetas. The hole was also the deepest completed at Titiribi to date, with a total down-hole depth of 1,031.80 metres, representing approximately 840 metres vertical depth. The hole encountered strong gold-copper mineralization associated with a porphyry body and intrusive sheared quartz breccia.

"It's rewarding to have success on our first drill hole of the 2010 exploration program, expanding the already-sizeable resource at Cerro Vetas in at least three directions - north, west and at depth," said CEO Philip O'Neill. "The gold-copper mineralized intercept in CV018 is one of the longest we've seen on the Titiribi project and the grade compares very well with previous drilling."

Initial highlights include:

    
    -   Wide gold-copper intercept of 340.25 metres grading 0.46 g/t gold and
        0.14% copper. Confirming size and grade of mineralization encountered
        by previous development drilling at Cerro Vetas. The intercept is
        nested within a broader zone of mineralization, grading 0.34 g/t gold
        and 0.11% copper over 583 metres beginning from surface.

    -   A second significant mineralized interval was encountered beginning
        at 823.40 metres downhole depth. This mineralization occurs
        approximately 200 vertical metres deeper than the current resource at
        Cerro Vetas. The gold mineralizing system appears to maintain its
        strength at depth, with assays of 0.49 g/t gold and 0.05% copper over
        24.2 metres - consistent with gold grades observed in shallower
        mineralized intercepts.


    -------------------------------------------------------------------------
           Orient-
           ation                                                  Au
    Drill  (incli-   Total                                        (g/t) Cu %
    hole   nation/   Depth                    Length              wt.   wt.
    ID     Azimuth)  (m)      From    To      (m)    Lithology    avg   avg
    -------------------------------------------------------------------------
    CV018 -56/N232  1031.80   0       583     583    Porphyry     0.34  0.11
                                                      and
                                                      Intrusive
                                                      Breccia
    -------------------------------------------------------------------------
                    Including 238.25  578.50  340.25 Intrusive    0.46  0.14
                                                      Breccia
    -------------------------------------------------------------------------
                    Including 321.70  347.50  25.8   Intrusive    0.85  0.11
                                                      Breccia
    -------------------------------------------------------------------------
                              551.50  571.00  19.5   Intrusive    1.14  0.29
                                                      Breccia
    -------------------------------------------------------------------------
                              823.40  847.60  24.2   Intrusive    0.49  0.05
                                                      Breccia
                                                      and
                                                      Granodiorite
    -------------------------------------------------------------------------
    

Significantly, hole CV018 expands known mineralization at Cerro Vetas at depth having tested mineralization to a downhole depth of 847.6m. This lower intercept is at an elevation of approximately 1310 metres, approximately 200 metres deeper than previously-identified mineralization.

CV018 is approximately 50 metres along strike north of the previously-tested mineralization boundary. The hole also expands mineralization down-dip by approximately 150 metres to the west. The Cerro Vetas zone remains open to the north, east, west and at depth.

The second hole of the Cerro Vetas drilling program, CV019, is proceeding and is currently at a total downhole depth of 999.9 metres. This hole is planned to be one of the deepest drilled at Cerro Vetas, with a total projected downhole depth of 1,300 metres (approximately 1,100 metres vertical depth). CV019 will test further depth extension of the Cerro Vetas mineral body, as well as shallow extensions to the east and deep extensions to the west. The third drill hole at Cerro Vetas, CV020, is also in progress and is currently at a depth of 53.5 metres.

The Chisperos Target

In addition to drilling on the Cerro Vetas zone that hosts the inferred NI 43-101 resource at Titiribi, Sunward is investigating the Chisperos target, located approximately 750 metres east of Cerro Vetas. Gold-silver mineralization has been identified at Chisperos by historic drilling, although these results were not incorporated into the current resource estimate.

Sunward commenced a 1,500 metre drill program in March 2010 on the Chisperos target (subsequently expanded to 8,000 metres), and has completed a detailed re-analysis and re-interpretation of historic drilling. Significant intercepts from initial assay results for the first four drill holes completed by Sunward plus re-assayed results from historic drill holes are as below.

Significant results include:

    
    -   The widest intersection of gold/silver mineralization recorded at
        Chisperos, in hole CP001, with 124.1 metres of 0.45 g/t gold and 0.63
        g/t silver.
    

"Our work at Chisperos was initially aimed at increasing our geologic understanding of the Titiribi project," said Mr. O'Neill. "But the results of the current drill program - and particularly the long mineralized intercept in CP001 - suggest that Chisperos could itself add tonnage to the overall resource at Titiribi, and potentially increase grade."

    
    -------------------------------------------------------------------------
           Orient-
           ation                                                  Au    Ag
    Drill  (incli-   Total                                        (g/t) (g/t)
    hole   nation/   Depth                    Length              wt.   wt.
    ID     Azimuth)  (m)      From    To      (m)    Lithology    avg   avg
    -------------------------------------------------------------------------
    CP01  -50/N205  365.50    41      165.1   124.1  Porphyry     0.45   0.63
    -------------------------------------------------------------------------
                    Including 75      99.1    24.1   Porphyry     0.80   1.24
    -------------------------------------------------------------------------
                              125.4   158.6   33.2   Porphyry     0.65   0.44
    -------------------------------------------------------------------------
                              192.30  206.50  14.2   Metabasalt   0.63   5.99
    -------------------------------------------------------------------------
    CP02  -50/N205  331.90    0.00    23.90   23.9   Porphyry     0.51   1.71
    -------------------------------------------------------------------------
                              103.90  114.7   10.8   Porphyry     0.88   1.23
    -------------------------------------------------------------------------
                              181.5   187     5.5    Metabasalt   0.77  23.44
    -------------------------------------------------------------------------
    CP03  -50/N205  500.30    0       300.65  300.65 Porphyry     0.26   0.56
                                                      and breccia
    -------------------------------------------------------------------------
                    Including 144.1   167.1   23     Porphyry     0.98   1.68
                                                      and breccia
    -------------------------------------------------------------------------
                              241.3   275.45  34.15  Porphyry     0.56   0.52
                                                      and breccia
    -------------------------------------------------------------------------
    CP05  -50/N205  500.40    103.27  145.50  42.23  Sediments    0.96   1.46
                                                      with
                                                      Porphyry
                                                      sills
    -------------------------------------------------------------------------
                              191.80  194.80  3      Metabasalt   0.51  14.00
    -------------------------------------------------------------------------
    TR01  -70/N270  200.00    12.00   33.00   21     Porphyry     0.71   1.48
    -------------------------------------------------------------------------
                              106.50  126.00  19.5   Sediments    1.57   3.22
                                                      with
                                                      Porphyry
                                                      sills
    -------------------------------------------------------------------------
                              129.00  138.00  9      Metabasalt   1.66   3.83
    -------------------------------------------------------------------------
    TR02  -55/N320  197.00    132.00  142.50  10.5   Sediments    1.13   3.67
                                                      with
                                                      Porphyry
                                                      sills
    -------------------------------------------------------------------------
                              162.00  166.50  4.5    Metabasalt   1.96   2.13
    -------------------------------------------------------------------------
    TR04  -60/N270  200.00    72.00   129.00  57.00  Porphyry     0.54   0.73
    -------------------------------------------------------------------------
                    Including 85.50   96.00   10.50  Porphyry     1.67   1.49
    -------------------------------------------------------------------------
    TR05  -60/N315  295.00    168.00  177.00  9.00   Sediments    0.94   0.52
                                                      with
                                                      Porphyry
                                                      sills
    -------------------------------------------------------------------------
    

The results suggest that the Chisperos target is a porphyry sill emplaced above metabasalt, intruding the local sedimentary sequence of quartz pebble conglomerate, sandstone and siltstone.

These sediments and the porphyry have been enriched by hydrothermal mineralization in discrete zones. Drill holes CP001, CP003 and CP005 intersect these mineralized zones over an inferred strike extension of 240 metres. CP002 intersects mineralization approximately 120 metres downdip from CP001.

Historically the hydrothermal mineralization in the permeable quartz pebble conglomerate and its contacts with the porphyry and metabasalt were mined, producing an estimated three to five million ounces of gold (NI 43-101 Technical Report dated May 19, 2010).

The holes reported above are located 500 to 750 metres east of the Cerro Vetas zone that hosts the current resource at Titiribi.

Virgen Target

Sunward is currently drilling holes VR001 (currently at 199.9 metres) and VR002 (currently at 72.4 metres) at the Virgen target, located 400m east of the Cerro Vetas zone. A total of 24 holes are planned for the current program at Chisperos/Virgen, with drilling moving progressively west toward Cerro Vetas. Further results will be released as assays are received.

Margarita, Porvenir, La Candela Prospects

The Margarita, Porvenir and La Candela prospects lie one to two kilometres south and southeast of the Cerro Vetas zone. A soil geochemistry program is underway covering all of these prospects. The samples are being collected on a grid with profile spacing of 100m and a sample interval of 40m. An estimated 3,200 soil samples are planned in this program and 1,552 have already been collected.

Jonathan Challis, FIMMM, is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.

About The Company

Sunward Resources is a well-capitalized Canadian-based company focused on the exploration of gold/copper porphyry projects in Colombia. The Company has strong operational expertise in Colombia and is currently drilling its Titiribi Project southwest of the city of Medellin with a goal of increasing the NI 43-101 inferred resource.

Sample Preparation, Assays, QA/QC

In the case of the drilling results referred to herein, the samples were prepared at Inspectorate America's sample preparation facility in Medellin, Colombia, and then analyzed at Inspectorate America's ISO 9001:2000 accredited laboratory in Reno, Nevada, USA. At the sample preparation facility in Medellin, the samples were crushed to over 80% passing -10 mesh using a terminator jaw crusher; split to 250g, pulverized using a LM2 ring pulveriser to over 90% passing -150 mesh, split to 125g, and then sent to Inspectorate America's laboratory in Reno for assay. Gold was analyzed by fire assay with Inductive Coupled Plasma (ICP) finish with a lower detection limit of 2 ppb. Samples above 5 g/t were analyzed by fire assay with gravimetric finish. In addition to gold, a suite of 30 other elements, including silver and copper, were assayed by ICP-AES. Blank and standard samples were routinely inserted into the preparation and analysis process as part of Sunward's quality assurance and quality control program.

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Sunward Resources Ltd. and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Sunward Resources Ltd. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Sunward Resources Ltd. disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Sunward Resources Ltd.

For further information: For further information: SUNWARD RESOURCES LTD., www.sunwardresources.com; Investor Relations: Scott Koyich, (403) 619-2200, skoyich@dskconsulting.ca; Corporate Contact: Murray Oliver, (604) 687-0888, murray@sunwardresources.com

Organization Profile

Sunward Resources Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890